VEON and Engro Corp Announce Strategic Partnership for Telecommunications Infrastructure
VEON (Nasdaq: VEON) announces a strategic partnership with Engro for telecommunications infrastructure management, starting in Pakistan. The first phase involves transferring VEON's infrastructure assets under Deodar to Engro Corp's subsidiary, Engro Connect. Jazz will continue to lease Deodar's infrastructure for mobile services under a long-term agreement.
As part of the arrangement, Engro will pay Jazz approximately USD 188 million and guarantee Deodar's intercompany debt repayment of USD 375 million. The deal aligns with VEON's asset-light strategy, focusing on developing services-focused businesses. The arrangement is subject to legal and regulatory approvals in Pakistan.
VEON (Nasdaq: VEON) annuncia una partnership strategica con Engro per la gestione delle infrastrutture di telecomunicazione, a partire dal Pakistan. La prima fase prevede il trasferimento degli asset infrastrutturali di VEON sotto Deodar alla controllata di Engro Corp, Engro Connect. Jazz continuerà a noleggiare l'infrastruttura di Deodar per i servizi mobili ai sensi di un accordo a lungo termine.
Come parte dell'accordo, Engro pagherà a Jazz circa 188 milioni di USD e garantirà il rimborso del debito interaziendale di Deodar di 375 milioni di USD. L'accordo è allineato alla strategia di VEON di asset-light, concentrandosi sullo sviluppo di attività orientate ai servizi. L'arrangiamento è soggetto a approvazioni legali e normative in Pakistan.
VEON (Nasdaq: VEON) anuncia una asociación estratégica con Engro para la gestión de infraestructuras de telecomunicaciones, comenzando en Pakistán. La primera fase involucra la transferencia de los activos de infraestructura de VEON bajo Deodar a la subsidiaria de Engro Corp, Engro Connect. Jazz continuará arrendando la infraestructura de Deodar para servicios móviles bajo un acuerdo a largo plazo.
Como parte del acuerdo, Engro pagará a Jazz aproximadamente 188 millones de USD y garantizará el reembolso de la deuda intercompany de Deodar de 375 millones de USD. El acuerdo está alineado con la estrategia de VEON de activos ligeros, enfocándose en desarrollar negocios centrados en los servicios. El acuerdo está sujeto a aprobaciones legales y regulatorias en Pakistán.
VEON (Nasdaq: VEON)은 Engro와 파키스탄에서 시작하는 통신 인프라 관리에 대한 전략적 파트너십을 발표했습니다. 첫 번째 단계에서는 VEON의 Deodar 아래 인프라 자산을 Engro Corp의 자회사인 Engro Connect에 이전하는 것입니다. Jazz는 장기 계약에 따라 모바일 서비스용 Deodar의 인프라를 계속 임대할 것입니다.
계약의 일환으로 Engro는 Jazz에 약 1억 8천 8백만 USD를 지불하고 Deodar의 기업 간 부채 상환 3억 7천 5백만 USD를 보장합니다. 이 거래는 VEON의 자산 경량화 전략과 일치하며, 서비스 중심의 비즈니스 개발에 중점을 두고 있습니다. 이 계약은 파키스탄의 법적 및 규제 승인을 받아야 합니다.
VEON (Nasdaq: VEON) annonce un partenariat stratégique avec Engro pour la gestion des infrastructures de télécommunications, commençant au Pakistan. La première phase consiste à transférer les actifs d'infrastructure de VEON sous Deodar à la filiale d'Engro Corp, Engro Connect. Jazz continuera à louer l'infrastructure de Deodar pour les services mobiles dans le cadre d'un contrat à long terme.
Dans le cadre de l'accord, Engro paiera à Jazz environ 188 millions USD et garantira le remboursement de la dette interentreprises de Deodar de 375 millions USD. L'accord est en adéquation avec la stratégie de VEON axée sur des actifs légers, se concentrant sur le développement d'activités orientées vers les services. L'arrangement est soumis à des approbations légales et réglementaires au Pakistan.
VEON (Nasdaq: VEON) kündigt eine strategische Partnerschaft mit Engro für das Management von Telekommunikationsinfrastrukturen an, beginnend in Pakistan. Die erste Phase umfasst die Übertragung der Infrastrukturvermögen von VEON unter Deodar an die Tochtergesellschaft von Engro Corp, Engro Connect. Jazz wird die Infrastruktur von Deodar weiterhin im Rahmen einer langfristigen Vereinbarung für mobile Dienste nutzen.
Im Rahmen des Arrangements wird Engro Jazz etwa 188 Millionen USD zahlen und die Rückzahlung der konzerninternen Schulden von Deodar in Höhe von 375 Millionen USD garantieren. Der Vertrag steht im Einklang mit VEONs leichter Vermögensstrategie, die sich auf die Entwicklung servicesorientierter Geschäftsmodelle konzentriert. Das Arrangement steht unter dem Vorbehalt rechtlicher und regulatorischer Genehmigungen in Pakistan.
- Strategic partnership reduces infrastructure costs through asset-light model
- Immediate cash injection of USD 188 million
- Guaranteed repayment of USD 375 million intercompany debt
- Long-term infrastructure lease agreement secured for continued operations
- Divestment of infrastructure assets may limit direct control over network quality
- Dependency on third-party infrastructure management
Insights
Amsterdam, Dubai and Islamabad, 5 December 2024 – VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON” or the “Company”), announces that it is entering into a strategic partnership with Engro Corporation Limited (“Engro Corp”) with respect to the pooling and management of its infrastructure assets, starting in Pakistan.
In the first phase of the partnership, VEON’s infrastructure assets housed under Deodar (Private) Limited (“Deodar”), a VEON Group company wholly owned by VEON through its subsidiary PMCL, will vest into Engro Corp’s subsidiary, Engro Connect, via a scheme of arrangement. VEON’s digital operator Jazz will continue to lease Deodar’s extensive infrastructure for the provision of nationwide mobile voice and data services under a long-term partnership agreement.
The partnership marks a significant milestone in VEON's asset-light strategy, aimed at increasing the Company’s focus on the development of services-focused businesses in line with VEON’s digital operator model. The arrangement is subject to the customary legal and regulatory approvals in Pakistan. As part of the arrangement, Engro will pay Jazz an amount of approximately USD 188 million and will guarantee the repayment of Deodar’s intercompany debt in the amount of USD 375 million.
"This strategic partnership is a pivotal move in advancing VEON's asset-light strategy. The traditional vertically integrated telco model is no longer viable for operators, neither is it conducive to the sustainable growth of developing economies. Our collaboration with Engro Corp, starting in Pakistan, our largest market, will empower Jazz to focus on innovative digital services and cutting-edge technologies that serve Pakistan’s digital ambition. It will also help VEON showcase the wide range of opportunities for shareholder value creation and new business models across our markets," said Kaan Terzioglu, VEON Group CEO and Chairman of Jazz Board.
“This deal reflects Engro’s continued passion to address pressing issues through impactful infrastructure – in particular by enabling low-cost, high-quality connectivity, which is a cornerstone of progress. This partnership will benefit the broader telecom ecosystem in Pakistan: By utilizing Engro’s infrastructure, all players in the telecommunications ecosystem can focus on delivering enhanced services and expanding coverage. The wider capability that will emerge out of this partnership will help us empower communities through better and more affordable connectivity, while contributing to the broader digital transformation in Pakistan and beyond” said Abdul Samad Dawood, Director of Engro Corporation.
About Engro Corporation Limited
Engro Corporation is a diversified Pakistani conglomerate that strives to solve pressing issues through its portfolio of businesses. It has developed businesses across the verticals of energy and related infrastructure, petrochemicals, food and agriculture, telecommunication infrastructure, and international trading, over a period of 50+ years. Many of these pioneering businesses have been established in collaboration with global partners including IFC, Royal Vopak, Royal FrieslandCampina, CMEC and others. To learn more about Engro Corporation, please visit www.engro.com.
About VEON
VEON is a Nasdaq-listed digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
Disclaimer
This release contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON’s investment plans, digital products, business plans and commercial partnerships. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.
Contact Information
VEON
Hande Asik
Group Director, Communications and Strategy
pr@veon.com
ENGRO CORPORATION
Aman Haque
Vice-President, Corporate Communication
corpcomms@engro.com
FAQ
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